25 June 2018
Rising funding costs have left Heritage Bank no choice but to increase interest rates on selected variable home loan products, CEO Peter Lock said today.
Mr Lock said the rates would increase by 0.05% across most of the bank’s variable home loan products, effective from 2 July.
“This was an extremely difficult decision that we took only after long and detailed consideration,” Mr Lock said.
“The cost of securing the funds that we lend to our customers has grown steadily in recent times.
“We’ve been absorbing those extra costs for as long as possible, but we now have no choice but to increase our variable rates slightly, so we can continue providing the same superior banking service for our customers.
“As well as dealing with the higher costs of funding, we are also investing significant amounts on the digital banking technologies required to meet changing customer expectations.”
Mr Lock said the increases would apply both to the rates of existing customers and to the rates offered to new customers.